This case study highlights how a luxury hotel targeting the Korean market can achieve up to a 38% increase in visibility on Naver’s SERP, a 54% improvement in click-through rates (CTR), and a significant decrease in average cost-per-click (CPC), ultimately leading to improved profit margins and reduced dependency on third-party booking platforms.
Overview of the Problems and Objectives
Luxury hotels operating in global markets such as Hong Kong, London, and New York often seek to expand their reach to Korean travelers. South Koreans are known for their strong spending power and preference for premium accommodations that emphasize design, service, and location. However, many businesses in the Hospitality industry face challenges when attempting to penetrate the Korean market due to the unique digital ecosystem dominated by Naver.
Key Industry Challenges
- Low Brand Awareness among Korean travelers;
- Poor Visibility on Korea’s biggest search engine – Naver;
- Over-reliance on OTAs (Online Travel Agencies), which reduce profit margins due to commission fees.
Objective
The core objective for these hotels is to increase direct bookings (conversions) and improve ROI by establishing a strong presence on Naver and effectively targeting high-intent Korean users through localized ads and content.
Identified Problems and Strategic Focus Areas
Low Brand Awareness in South Korea
Despite global recognition, many luxury hotels remain virtually unknown among Korean travelers. In Korea, local trust and recognition are essential, especially in hospitality, where reviews and familiarity significantly influence booking decisions.
- Korean users often rely on local content and Korean-language reviews before making travel decisions;
- Many luxury hotels lack Korean-language landing pages or a branded presence on Korean platforms, limiting visibility and trust.
Low Search Visibility on Naver
Most Korean users begin travel research on Naver, but luxury hotels often miss both organic and paid visibility due to unfamiliarity with the platform.
- Global keyword strategies often neglect Korean search behaviors;
- A lack of experience with Naver Ads or Power Content placements results in minimal exposure to target audiences.
High Dependency on Third-Party Platforms
Without a direct digital strategy for Korea, hotels tend to rely heavily on OTAs such as Trip_com or Booking_com.
- These platforms generate bookings, but at high commission rates;
- There is little to no brand loyalty or engagement generated from these transactions.
Strategic Implementation
InterAd addressed these challenges using a strategy that focuses on visibility, localization, and cost-efficiency.
Keyword Optimization and Localization
InterAd began with a full keyword audit tailored to the Korean market:
- Identified high-intent, Korean-language travel terms related to luxury stays, seasonal promotions, and local attractions;
- Created tailored ad copy in Korean, adjusting for formality and cultural tone;
- Conducted A/B testing of headlines and descriptions to determine the most effective combinations.
Power Content Ads and Naver Blog Integration
To boost visibility and build authority:
- A branded Naver Blog was created, publishing regular content in Korean, including travel tips and hotel news of up to 800 words;
- InterAd launched Naver Power Content Ads using posts that highlighted unique hotel features.
The Power Content Ads further helped the Blogs gain visibility. This approach integrated the luxury hotel as a trustworthy brand in South Korea, as it provided the local people with enough information about the services in the local language.
Cost Optimization
- InterAd reduced CPC while maintaining visibility;
- High-converting keywords were prioritized over high-volume ones.
Results
With the help of InterAd, this luxury hotel reported measurable improvements:
- Visibility on Naver’s SERP increased by up to 38%, raising brand recognition among Korean travelers.
- Click-Through Rates (CTR) improved by up to 54%, driven by localized messaging and targeted keywords.
- Average CPC decreased significantly, enabling greater ad efficiency within existing budgets.
Additionally, a growing share of bookings came through direct channels, reducing dependency on third-party platforms and improving overall profit margins.
Conclusions
This case study demonstrates how luxury hotels can thrive in the Korean market by adopting a locally-aware digital strategy on Naver. Through keyword localization and native content development, InterAd has enabled brands to effectively reach Korean travelers and achieve sustainable results.
Ongoing updates to content and ad campaigns remain essential for maintaining performance. For hospitality brands looking to tap into Korea’s travel market, Naver – supported by expert partners like InterAd – presents a powerful opportunity.
